Apple Looks Capable of Further Gains as Earnings Approach

Our latest look at the charts and indicators.

Apple Inc. (AAPL) , which reports its earnings on Thursday, should be able to hold its own thanks to its services, according to Jim Cramer. Let's check out the charts and indicators of AAPL today to see how traders and investors may be positioned ahead of earnings amid reports the company is pushing back their production ramp for their 5G iPhone lineup.

In the daily bar chart of AAPL, below, we can see that prices rebounded quickly from their March low. There is a shallow pullback in early April that may be a "retest" before prices moved higher. Prices are now above the bottoming 50-day moving average line as well as above the rising 200-day moving average line.

Trading volume was very heavy from late February through March and the On-Balance-Volume (OBV) line plunged to a new 12-month low in March. The OBV line has been steady since late March which is "just OK" when a rising OBV line would be more positive.

The Moving Average Convergence Divergence (MACD) oscillator has quickly improved with the price action and went from a cover shorts buy signal in late March to crossing the zero line. Currently the MACD oscillator is losing some strength.

In the weekly bar chart of AAPL, below, we see a mostly bullish setup. Prices are back above the rising 40-week moving average line.

The weekly OBV line is turning up nicely and tells us that buyers of AAPL on this time frame are aggressive buyers. The MACD oscillator is above the zero line and narrowing toward a fresh outright go long signal.

In this daily Point and Figure chart of AAPL, below, we can see a potential upside price target in the $339 area.

Bottom-line strategy: Apple's earnings figures are due out this Thursday. The charts and indicators of AAPL are pointed up ahead of earnings so unless there is a big disappointment in the numbers or guidance I would anticipate that prices work higher in the coming weeks.

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